CHANCELLOR & BANKERS

Greymouth Evening Star, 13 May 1927, Page 7

CHANCELLOR & BANKERS

BUDGET POLICY DEFENDED. (Australian & N.Z. Cable Asan.) LONDON, May 12. Mr Churchill in an address at the British Bankers’ Association dinner, said: “I would have felt happier with tuppence on the income tax. producing just a few extra millions, making the Chancellorship comfortable, but I thought it manlier to get our extra expenditure on Shanghai out of economies, thereby enabling a renewed attempt to be made at economy in 1925. I realise that taxation on the. present level impedes the creation of new wealth. It resembles a dead hand upon the nation’s industry. The general strike put back the prospects of debt conversion eighteen months.” Alluding to his note to Mr Mellon (U.S.A. Secretary of the Treasury) Mr • Churchill said that that gentleman’s reputation as a world statesman and

as a. financier was so high as to make it absolutely necessary that the Government should issue a correction of misstatements into which he had been inadvertently led.

“We owe this to our European debtors,” he said, “and to our own public opinion.” Mr Churchill then vigorously referred to the rebirth of German competition and said Germany was a great scientific organisation, which by an involuntary act of repudiation, freed itself from the majority of its debts. “This competition,” he said, “will impinge on the world’s markets. It is only by setting her house in order that England can make any headway against these complications.” AUSTRALIAN BORROWINGS. LONDON, May 12. The A.ustraliaji, Al? AlcCovmack, ami Mr Patel, President of the Indian Legislative Assembly, were the' chief guests at the Empire Parliamentary luncheon. Mr Amery, presiding, said he hoped that Mr McCormack would obtain a loan in Britain on favourable terms. Mr .McCormack emphasised that it was essential Britain should provide cheap money to assist the Dominion to develop trade and migration. Britain within a decade would be faced with

the problem of forming a Customs’ Union with the Dominions or association with Europe, resulting in the Dominions raising tariffs against the older countries. Personally, he hoped for an Empire Customs’ Union, enabling .Australia, assisted by British monev. to develop manufactures without 'even British competition, buying in Britain goods she was unable "to make economically. The United States, with money to burn, made from the war and Britain’s misfortunes, was anxious to lend to Australia. On the contrary, Australia preferred support from Britain, which' took her primary produce. Queensland would only borrow from the United States if compelled. Mr Patel said he hoped that the Indian Legislature with largely extended powers and status, would soon welcome at Delhi representatives of the Empire Parliaments to discuss mutual problems.